CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader,...
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Transcript of CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader,...
![Page 1: CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSO Christine Siu, Auditor,](https://reader035.fdocuments.net/reader035/viewer/2022062620/551b8ac5550346942b8b4d20/html5/thumbnails/1.jpg)
CRA and the 2010 Olympic Games
CGA/CRA Liaison Meeting – July 8, 2008
Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSOChristine Siu, Auditor, 2010 Olympics Team, Vancouver TSO
![Page 2: CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSO Christine Siu, Auditor,](https://reader035.fdocuments.net/reader035/viewer/2022062620/551b8ac5550346942b8b4d20/html5/thumbnails/2.jpg)
Agenda
• Background
• CRA Involvement
• Technical Issues and Actions
• Questions
![Page 3: CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSO Christine Siu, Auditor,](https://reader035.fdocuments.net/reader035/viewer/2022062620/551b8ac5550346942b8b4d20/html5/thumbnails/3.jpg)
Background
• Vancouver 2010 Winter Games are the third Olympic Games in Canada:
• February 12 – 28, 2010 (17 days)
• Vancouver 2010 Paralympic Winter Games will be the first winter Paralympic Games in Canada
• March 12 – 21, 2010 (10 days)
![Page 4: CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSO Christine Siu, Auditor,](https://reader035.fdocuments.net/reader035/viewer/2022062620/551b8ac5550346942b8b4d20/html5/thumbnails/4.jpg)
Economic Impact
GDP ($Billion)Employment (Person Yrs) Taxes ($Billion)
6.1 126,000 1.413
8.4 187,000 2.028
10.7 244,000 2.677
Source:
Available at:
Economic Impact of the 2010 Winter Olympic and Paralympic Games: An Update, InterVISTAS Consulting Inc., October 2002, p. 78
http://www.cse.gov.bc.ca/2010secretariat/2010/index.htm
Marketing Effort
Low
Med
High
![Page 5: CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSO Christine Siu, Auditor,](https://reader035.fdocuments.net/reader035/viewer/2022062620/551b8ac5550346942b8b4d20/html5/thumbnails/5.jpg)
Comparison of Hockey Attendance in February
0
100000
200000
300000
400000
500000
600000
700000
Giants Pacific Coliseum
Canucks GM Place
Olympics UBC & GM Place
45,000 74,000
650,000
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Background
• A major international undertaking
• Partners, sponsors, supporters and suppliers
• All levels of government and First Nations
• Businesses, athletes, officials, volunteers, visitors, and media
![Page 7: CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSO Christine Siu, Auditor,](https://reader035.fdocuments.net/reader035/viewer/2022062620/551b8ac5550346942b8b4d20/html5/thumbnails/7.jpg)
VANOC - The Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games
Source: VANOC third quarter report for the 2007-08 fiscal year, June 20, 2008, p. 12-13
EXPENSES $2.2 billion
Sport, services and games operations $735M
Technology and Other $768M
Marketing & communications $126M
Venues $580M
REVENUE $2.2 billion
Domestic sponsorships $760M
Ticketing, licensing and merchandising $278M
Government and
Other $730M
IOC contributions $638M
![Page 8: CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSO Christine Siu, Auditor,](https://reader035.fdocuments.net/reader035/viewer/2022062620/551b8ac5550346942b8b4d20/html5/thumbnails/8.jpg)
Government Participation
• Government of Canada commitment - $656 million
• Province of B.C. commitment - $600 million
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Government Participation
• Landmark multi-party agreement
• Provide essential government services and capital funding
• 2010 Olympic and Paralympic Winter Games Federal Secretariat
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CRA Participation
• Committees & Working Groups
• CRA 2010 Website
• CRA 2010 Olympics Team
• Outreach
• Compliance
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The CRA 2010 Olympics Team
• Single Point of Contact
• Committee representation
• Coordinate 2010 activities
• Research / Best Practices
• Perform audits
• Deliver outreach
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Outreach
• Increase compliance through education
• Presentations to various stakeholders
• Vancouver Regional Construction Association
• NBC
• Province of BC
• Minister of National Revenue
• Beijing/X’ian Tax Officials
![Page 13: CRA and the 2010 Olympic Games CGA/CRA Liaison Meeting – July 8, 2008 Andrew Chan, Team Leader, 2010 Olympics Team, Vancouver TSO Christine Siu, Auditor,](https://reader035.fdocuments.net/reader035/viewer/2022062620/551b8ac5550346942b8b4d20/html5/thumbnails/13.jpg)
Compliance – Tax & GST Issues
• Sponsorships
• Underground Economy
• Provincial Income Allocation
• Increased Real Estate Activity
• Non-resident & International
• Accommodations
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Hiring Non-Resident Employees
• Tax implication: A Ltd. is required to deduct CPP, EI, and Income Tax. The non-resident employee receives a T4 slip at the end of the taxation year and reports it on his income tax return filed in Canada.
A Ltd.
Employer
Construction worker (U.S.)
Employee
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Regulation 105 Withholding Tax
• Tax implication: B Inc. is required to withhold and remit 15% of the gross payment per Regulation 105 of the Income Tax Act
• Non-resident would file a T1 to establish final tax liability
• Non-resident may apply for a Regulation 105 Waiver if applicableConsultant from Seattle
giving a seminar on Olympic recruitment to staff at B Inc.
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Part XIII Withholding Tax
• Tax implication: The Toronto resident withholds Part XIII tax (25%) from the rental payments.
• This represents the non-resident’s final tax liability and he is not required to file an income tax return in Canada.
RENT
Australian resident owns Whistler condo
Toronto resident rents the condo during the Olympics
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Non-Resident GST Issues
• A non-resident carrying on business in Canada who
• Is making taxable supplies in Canada, and• Is not a small supplier
Must register for GST/HST.
• Non-resident corporations may voluntarily register in certain situations
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New Legislation 2007
• Three components• Waive non-resident withholding tax liability of the IOC
and the IPC
• Non-resident athletes and other non-resident individuals not to be taxed
• Cancel duties, excise, and GST on certain goods imported in connection with the Games
• Subsections 115(2.3), 212(17.1), and 153(1)
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Accommodations IssueComparison of Rental Prices
RICHMOND Olympics Present
House $50,000 - $90,000 $3,500
Townhouse $44,250 $2,995
Condo $24,000 $1,900
VANCOUVER Olympics Present
Yaletown condo (2 b/r) $40,500 $2,250
Downtown condo (1 b/r) $18,000 $1,650
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Comparison of Rental Prices
WEST VANCOUVER Olympics Present
House $102,000 N/A
Condo (2 b/r) $27,000 $1,600 - $1,975
WHISTLER Olympics Present
Whistler Village townhouse (4 b/r) $6,500/night $500/night
Blackcomb condo (2 b/r)
$1,350/night $200/night
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CRA Websitehttp://www.cra-arc.gc.ca/2010games/